Borrowing

Borrower is the person seeking a loan.

Summary of the borrowing process from the borrowers perspective is as follows.

Borrower requests a loan at MetFi Marketplace with the system calculating the maximum loan possible using the formula (0.1 x value of staked MFI in BUSD).

Borrower enters the amount of BUSD they wish to borrow, the interest rate (%), and loan duration and executes the loan request by following the prompts.

Borrower waits for the loan pool to fill up as one lender or multiple lenders can fill the pool.

When the pool is full the borrowers NFT is sent to the lending contract, the staked MFI is locked and the borrower receives their BUSD minus treasury fees which are deducted from the BUSD that the borrower receives.

MetFier Rewards that the borrower was eligible to receive while the loan is active are sent to the treasury for safe-keeping and the borrower can contribute additional BUSD to the repayment pool at any time.

Borrower clicks the ‘Close Loan’ button, the NFT is back under their control and all of the lenders are repaid their capital plus the agreed interest.